MyFxBook | Forexfactory
Should you require our Trade Record to be at your preferred third-party verification provider, ping me up of post something here.
Brief Introduction about me (Chief Developer of HA Strategy):
- 6 years “intensive” FX trading experience
- Technical Analysis (TA) fan in earlier days of trading.
- Believer in combination of both “Technical Analysis (TA)” and “Fundamental Analysis (FA)” to form the “best trading strategy” in earlier days – but never utilized them.
- Have at least 10 experiences in bursting of accounts (from $500 - $25k) due to various factors such as Analysis Paralysis, Heightened Emotional Trading, Discipline-less Mobile Trading & perhaps, Random Technical Indicator Invention trading.
(By “intensive”, I mean staring-at-5mins-to-30mins chart, missing-sleep-staring-at-price-movements kind of experience & gaining-100%-in-no-time-with-full-leverage kind of trading.)
Chat me (Skype/Email: [email protected]) up if you would like to know more about those factors that ensure bursting of your FX account.
Brief Introduction - Design of the Strategy:
The HA Strategy utilizes a system algorithm to Track and Quantify:
- 312 indicators (fundamental data) across 8 currencies. (AUD, NZD, CAD, CNY, USD, JPY, GBP, EUR)
- Monthly (m/m), Yearly (y/y) and Quarterly (q/y) results of the individual data
- - Moving Average (MA) movements of the individual m/m, y/y and q/y indicator (economics data).
Using the quantified scores from individual fundamental data, consolidated strength index of the currencies can be quantified using a pre-defined algorithm.
From which:
- Daily Price movements of currency pairs are fitted into the change of the generated fundamental values to form a correlation factor between fundamental value change and price action change.
- With the correlation factors and fundamental strength indices, as well as the daily price action movements are formulated to derive to a movement of estimated fundamental “Intrinsic Value” of currency pair.
Fundamental “Intrinsic Value” of currency crosses forms the core basis of the strategy for orders signal (Fundamental Trade Positioning).
Sensitivity of the Base Index (a.k.a “Intrinsic Value”)
Naturally, the calculated fundamental strength index changes alongside release of new fundamental data. The latest spike up was a direct positive result from string of EUR data, as well as USD data overnight.
How accurate is the strategy?
Not 100%. However, orders generated are based on the below:
The strategy does not simply take the “If fundamental low, sell” or “If fundamental high, buy” logic.
Instead, it attempts to capture market inefficiencies & distortion, rather than to capitalize on identified quantified fundamental strength of currency.
The idea & rationale behind is to capitalize on based on the below philosophy:
1) Market participants knows it is overextended, but decides to carry on with the current market sentiments, this will allow pullback to be extra sensitive and susceptible for pullbacks,
2) Fundamentalists & Technician should probably be also waiting to entry in the identified areas (Fibo levels), unless otherwise, next level will be ordered.
3) Over-extension of market also means risk is discounted, wrong trades are further protected by having a pre-determined; fixed-40pips stop loss (SL) and re-evaluation on a daily basis.
That said, orders are generated on a daily basis, but it does not change daily unless with significant fundamental value change.
The strategy is now tracking 21 currency pairs, with orders generated on all currency trades with the above criteria hit. That said, orders can take as fast as 1 day if triggered, to 5 trading days.
Lastly, the trade record is young, but the strategy is not (around 1.5 years old).
For more information, visit http://tiny.cc/HAresearch
